Geffen: No investment case in Lloyds and RBS

Neptune founder and managing director Robin Geffen says the group will be avoiding Lloyds and RBS, labeling yesterday's rights issue announcements a "rescue operation".

The view is in contrast to Schroders' Richard Buxton, who says the capital injections show the banking giants are in a "healing" process. Geffen says the size and scope of these capital raisings should remind people of the scale of problems Lloyds and RBS face. "They are actually raising more cash than their current market capitalisations; given that they are looking for £54bn with a current market cap of £23bn for Lloyds and £20bn for RBS," Geffen says. "We are not looking to participate in either company given that this is a rescue operation rather than an investment opportunity....